According to Power Development Plan VIII (PDP8), the target for offshore wind (OSW) capacity is set at 6,000MW by 2030. However, as of now, no project has received a decision or been formally assigned for development.

In a statement issued by the Government Office on October 1, DPM Son instructed the MoIT, in collaboration with PetroVietnam, to submit a proposal to the prime minister for the group to lead the pilot survey and development of OSW projects.

"With 2030 fast approaching, the early implementation of OSW is crucial to ensure the execution of the national energy plan," said DPM Son.

In addition, the MoIT, alongside other relevant ministries, has been directed to review and propose amendments to existing regulations in the Electricity Law and related legislation to improve the legal framework for energy projects, including OSW.

The MoIT proposed three options in July for selecting investors for pilot OSW projects, one of which included PetroVietnam. The ministry noted that certain infrastructure and components of OSW projects are similar to offshore oil and gas operations, positioning PetroVietnam with an advantage in terms of resources to undertake the pilot project.

However, authorities have noted that if PetroVietnam is to be assigned OSW investment, the group’s sectoral investment strategy and business focus must be reviewed and adjusted. Furthermore, PetroVietnam would need to make structural changes to meet the unique requirements of the offshore renewable energy sector.

The MoIT's calculations indicate that electricity generation needs to grow by 10-12 per cent annually to support Vietnam’s socioeconomic development. DPM Son highlighted the importance of prioritising early investment in power projects to meet future demand.

He added, "Priority should be given to renewable energy sources capable of serving as baseload power, such as OSW and liquefied natural gas, to support the nation’s goal of achieving net-zero emissions by 2050."

OSW development has been allocated across regions in the implementation plan for PDP8. Northern Vietnam is expected to develop 2,500MW, central Vietnam 500MW, south-central Vietnam 2,000MW, and southern Vietnam 1,000MW.

Globally, the OSW sector is dominated by major oil and gas players such as Equinor, Shell, Repsol, Total, BP, and Chevron. In Southeast Asia, Malaysia’s national oil company, Petronas, has formed a renewable energy subsidiary, Gentari, and acquired a 29.4 per cent stake in the Hai Long OSW project in Taiwan as part of its strategy to expand into this energy sector.